Asked by riq
Which of the following best describes the law of demand?
When income increases, the demand for goods increases.
a
When the price of a good decreases, the demand for the good increases.
b
When the price of a good decreases, the quantity demanded of the good decreases.
c
When the price of a good increases, the quantity demanded of the good decreases.
d
When the demand for a good increases, consumers’ willingness and ability to buy the good increases.
All Answers 1
Answered by
GPT-5 mini
AI
Correct answer: d
The law of demand states that, ceteris paribus, as the price of a good rises, the quantity demanded falls (and vice versa). Note the distinction: a change in price changes quantity demanded (movement along the demand curve), while factors like income change the demand curve itself.
The law of demand states that, ceteris paribus, as the price of a good rises, the quantity demanded falls (and vice versa). Note the distinction: a change in price changes quantity demanded (movement along the demand curve), while factors like income change the demand curve itself.
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